Investment Stewardship

A Letter From the CEO

After a year of profound change in our business through the acquisition of Sandstorm Gold and Horizon Copper, and the completion of the largest single investment made in Royal Gold’s history at Kansanshi, I wanted to take the time to address what has not changed: our approach to strategy and, within it, our continued focus on investment stewardship.

Transforming the company into a much larger entity does not mean we lose sight of the detailed areas of risk that must be managed on a daily basis. If we lose that focus, we will not have succeeded in achieving our Vision of being the gold standard in all of our endeavors. I can assure you that this continued focus on investment stewardship applies to our Board as well.

We continue to frame this report as a risk management product rather than a sustainability-focused publication, because the way we identify, mitigate, and reduce risk is fundamental to how we protect and grow shareholder value. We believe we have mitigated or reduced risk in our portfolio in key areas as a result of last year’s activity. We diversified our portfolio from a revenue and net asset value basis. We enhanced the growth profile of the company with the acquisition of key development projects.

We saw the duration of our portfolio increase, not just associated with our acquisition activity, but also through key life of mine extension opportunities at Mount Milligan and Cortez.

These positive developments were set against a very favorable metal price environment with gold and silver prices increasing on average 44% and 42% to $3,432/ ounce and $40.03/ounce, respectively. We believe a successful integration of our acquisitions and the demonstration of the combined financial strength of our much larger company will continue to generate more interest by prospective investors in Royal Gold.

In terms of sustainability, our due diligence continues to not just focus on key areas such environmental and social impacts but also focuses on geology, mining and metallurgy. The due diligence assessment provides us the opportunity to best understand a project and we incorporate standards and further risk assessments when necessary, including those that may involve independent third party reviews.

We aim to provide financial assistance to the operators within our portfolio to assist with their local community programs when possible. We added a new commitment in Zambia with the Kansanshi interest in 2025. All told, our contributions to operator and local community programs increased to just over $1.5 million. We also continued to expand our support of the next generation of mining engineers, adding a sixth scholarship to our record of higher education spending.

This is our fifth annual report covering sustainability matters and we are continuing to build a record of consistency in areas such as reporting progress against TCFD, fully offsetting our corporate related emissions and the tracking and reporting of our Scope 3 emissions. This report does not include detailed data associated with the Sandstorm Gold and Horizon Copper acquisitions, or the Kansanshi transaction, due to the fact that these assets were not in our portfolio during 2024. We expect to fully incorporate those measures in next year’s report.

Sincerely,

William H. Heissenbuttel
President and Chief Executive Officer

A Letter From the Chairman

DEAR STAKEHOLDERS,

As Chair of the Board of Directors, I am pleased to present our fifth annual Investment Stewardship Report.

The Board plays a central role in continuing to ensure that our strategy is aligned with responsible capital allocation, effective risk management and strong governance. Investment stewardship, including sustainability, remain core priorities, guiding how we evaluate opportunities, monitor performance and support management in delivering value for our stakeholders.

Following a very successful past year, we continued to strengthen our oversight of environmental and social risks and opportunities, recognizing their continued importance to long-term performance.

In 2025, we remained focused on enhancing transparency, supporting responsible mining practices and monitoring portfolio risk, all while completing our most significant acquisitions to date, Sandstorm Gold and Horizon Copper along with the Kansanshi transaction.

Engagement with stakeholders continues to inform our work. We value the perspectives of our investors, employees, Operators and the communities connected to our operations. Their insights help shape our priorities and reinforce our commitment to transparency and accountability.

On behalf of the Board, I would like to thank our management team and employees for their dedication, and our shareholders and stakeholders for their continued trust and support.

Sincerely,

William M. Hayes
Chairman of the Board